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Allen & Overy has been ordered to rehire a Frankfurt-based associate laid off earlier this year after German labor courts ruled that her dismissal was unlawful.
The Magic Circle firm has confirmed reports on legal blog RollonFriday that the German court handed down a ruling Wednesday ordering it to take back an associate it laid off as part of its global restructuring earlier this year.
The ruling said that the associate is still employed by the U.K. firm as the dismissal did not comply with German employment laws.
It is understood that the lawyer was one of two former Frankfurt associates suing Allen & Overy. However, the other lawyer agreed to settle -- dropping the claim for an undisclosed fee over the summer.
An Allen & Overy spokesperson said: "We confirm that on 23 September 2009, the Frankfurt Labor Court, court of first instance, decided in favor of an associate who sued against her notice of termination."
Magic Circle rival Clifford Chance is also involved in a German employment dispute as a result of its restructuring process.
The firm has contested claims filed by two former salaried partners in Düsseldorf, accusing the firm of unfair dismissal relating to its partnership restructuring launched in the spring.
The partners claimed that as nonequity partners, they were employees rather than shareholders, which would grant them additional protection under local law. It is believed the case is still ongoing.
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